How to Cancel Car Insurance

There are many times in life when you may want to cancel car insurance. You may have decided to switch companies because you found better pricing. Maybe, you are taking a trip out of the country and have decided to park your car for a while. It may even be these rough financial times that have made you decided that it is to expensive to keep driving an automobile and that you are going to have to cancel car insurance. Whatever the reason that you have come to this decision, you are going to need to take some specific steps to make sure that it goes smoothly.

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Step One

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If you want to cancel car insurance and you still plan to drive, you are going to need to have a policy in place to replace the one that you are stopping. It is against the law to drive around without any type of coverage. If you cancel car insurance without having a new policy in place, you could end up being pulled over. This could result in fines and even your car being towed away. This is an expense that you can easily avoid if you start the new policy.

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Step Two

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Get the phone number to your current company. Just about every company insists that you talk to an agent when you want to cancel car insurance. The reason that they do this is that they will try to talk you into not leaving them. It is part of their sales strategy. On the bright side, you may be able to get an even better rate by this vying for your business when you want to cancel car insurance.

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Step Three

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If you are switching companies, then the one that you are leaving will probably need a letter sent from you stating this. Your new company may even have a sample letter that you can send to cancel car insurance. It basically states that you are going to cancel car insurance with a company effective on a date. You also state that you have new coverage and when it will be starting. You sign this letter and send it off to cancel car insurance when you are just doing a switch.

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Step Four

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When you cancel car insurance to park a car or get rid of it, there is another step that you are going to need to take. You will need to surrender your license plate and registration to your state. The company that you have left will notify your current company that you have take the steps to cancel car insurance. This will alert the state DMV. If they do not get word of new coverage withing 30 days, they will fine you if you do not surrender your tags and registration. You can mail it in to the address found on your state DMV website.

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The big businesses try to make it hard to cancel car insurance. They do not want to lose your business. This can make you feel helpless and unable to shop around for the best deals. As you can see by this simple step by step process, you can easily cancel car insurance.

Comments

Sep 1, 2010 1:26pm

Deborah-Diane
This is very detailed information that will be helpful to anyone who needs to cancel their old car insurance. This is particularly good information for young people who may not have gone through this before!

Sep 1, 2010 8:21pm

Geargirl113
Thank you. I was doing this the other day to try to save money and realized that there are people that do not know just how easy it could be.

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